.Yardie,
If you dont want to watch the charts all day, just do what I do... Sign up at www.alertfx.com They will send a text alert to your phone when the MA's cross.
BaGOVINO
!Thanks for prompt reply. Yes I traded EUR/USD.
I double checked my graph. WMAs has crossed many hours before. That is why I doubted if I was late in trade. I am really talking about EMAs grossing here and they are really going down in my graphs. BTW I am trading FX Trading Station II and my WMAs are LWMAs (Linear...).
Thanks,
nchosen
Oops. My mistake. I see your entry point and the cross of the 18-28. I think you made a good entry and your SL was reasonable. You lost one, but thats just part of the game. I always use SL's, but I like to monitor my trades often which sometimes negates the SL and I will bail out manually when the 5 & 8 cross and/or start to do a sideways spiral pattern.
This type of trading strategy is actually two trades stacked on each other (someone else mentioned this earlier) and if played right you can use a very small SL.
I like to watch the 5-8 WMA's ( or 5-12 EMA's if you prefer) and enter with 4-6 lots when they cross close (10-15 pips out) to the 18-28 tunnel. This is my short term/small SL trade. If the trade goes thru the tunnel, then I am in it for a longer term. The nice thing is this: If am already in profit from my short term trade, then I put my SL locked in profit of several or more pips just on the other side of the tunnel after the price leaves 20 or so pips in profit. From here on out it is free pippin'.
If my short term trade starts to go against me, then I bail out and make another entry attempt later while either several pips in profit or losing a few pips. I will never allow myself to lose more than 5 pips on my short term trade before the short term trade has crossed thru the tunnel. I am relying on the momentum of the price to carry me to (and hopefully thru) the 18-28 tunnel. If that isn't happening I am out, pronto. I'm willing to give up a few pips on multiple entry attempts because when the trade eventually does go, it usually goes big.
As the price pulls away from the tunnel in my long term trade, I take profit at fib levels (21, 34, 89, 144) while moving my SL deeper into profit as the next fib level is reached. I usually let the last lot(s) run using a 20 pip trailing stop.
What I am doing is a culmination of several strategies that I have studied. In case you are wondering, I am demoeing Sidus' method using the above guidelines. I like it so far
. Thanks for clarifying. Just few more questions: What's your regular time frame and fibo leves just now?
nchosen
I prefer the 1/2 hr timeframe and my fib levels start where the 8WMA crosses the tunnel. I use fib levels 21, 34, 55, 89, 144 and sometimes 15 if the trade has lost momentum after passing thru the tunnel. It helps to have a basic understanding of the way each pair moves and retraces also. Sometimes you have to take a lot or two of profit early at your discretion if the lower fib levels have already been breached when the 8 crosses the tunnel (i.e. you are at the 55 fib level when the tunnel is crossed by the 8 WMA).
I'm considering moving to the 5 & 13 EMA's to try out. 13 instead of 12 because it is a fibo #
Also, I try not to enter a trade in the first 5 minutes or last 5 minutes of a 30 min candle (a habit I got into when I was using Bunnygirl's BGX system) as people may be taking profit at those times and skewing the entry point so that I am in a losing position within minutes of entry.
Most importantly, I'm learning from what I do (I consider myself a mediocre trader at best, LOL).
